Canada’s fourth-largest energy company, Shell Canada Ltd., posted a 94% increase in profit in the third quarter with the help of higher commodity prices and stronger production numbers.

Net income was C$451 million (US$362.8 million), or C$1.63/share, compared with C$232 million (84 cents) in 3Q2003. Sales were up 34% to stand at C$3.06 billion.

Natural gas sales fell slightly in the quarter to 536 MMcf/d from 537 MMcf/d in 3Q2003. Gas sold for C$6.24/Mcf, a gain of 4% from a year ago. Production of bitumen, an extra-heavy crude oil, at the Athabasca Oil Sands Project rose 33% from a year earlier to 154,200 bbl/d. The company is focused on Alberta’s tar sands as conventional North American reserves decline and demand rises.

Shell Canada, which owns 60% of Athabasca, and its partners plan to spend at least C$4 billion to expand tar sands output to 270,000-290,000 bbl/d by 2010. ChevronTexaco Corp. and Calgary-based Western Oil Sands Inc. each own 20% of the venture.

©Copyright 2004 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.